Otherwise the tax bill seems to favor real estate by retaining some of the good things we depend on. It appears real estate is not covered by the interest deduction limitation, 1031 exchanges are retained but there are some possible changes and carried interest is retained, as are low income housing credits. New market tax credits and other tax credits seem to be eliminated.

The bill is very complex and will have some changes so you need to sit with your tax experts and see how it applies to your business and product. It will be very different for those developing and owning commercial as opposed to residential in high SALT locations.

Overall, ignoring the real estate specific points, the tax bill will be very good for the economy and will very likely raise growth to over 3% and maybe as high as 3.5% since the world economy is stronger and growing nicely and will provide the strong growth bias in any event. The tax bill just adds fuel to a good thrust we are now on. T

he elimination of many problematic regulations that impacted development and buildings in general is a very good thing, and the combination of deregulation and lower corporate taxes, along with potential massive repatriation, and infrastructure spending, portends a very good run for CRE for several more years. As corporations add to earnings, they can afford to add to their real estate, and will likely do so, especially in the distribution and industrial areas.

With the lower corporate rates and incentives to keep operations in the US, the potential for growth in the industrial and warehouse distribution sector is very high. It will be the place to be for many years. With the tax bill as set forth, Trump does not need to impose tariffs and does not need to blow up NAFTA to bring factories and jobs back to the US. The tax bill and deregulation do that in a major way.

Overall, the tax bill initially appears to be a big win for CRE other than for residential in certain Democratically run states. I expect the property tax deduction will get raised a few thousand dollars, but that will not really make any material difference to the developers of high end homes and condos. Like everything in life, one man's problem is another man's opportunity. So the problems for New York, NJ, and CA residential developers, is a grand good news thing for Florida, Nevada and Texas developers. Maybe to compete the Democrats will finally see the error of their ways on taxes and regulations, and excessive development fees in local communities, and will start to lower those costs to compete. I doubt it, but maybe.

If the Republicans in the Senate do not act like egomaniac idiots again, and if the bill passes in its essentially current form, then the economy will continue to grow well, the stock markets will continue to go up and, with the corruption investigations into Hilary and the DNC and the dossier in full gear next year, Republicans will not only keep control, but will pick up seats in the Senate and local legislatures and governorships, and we will see more deregulation and pro developer attitudes. It is the economy stupid.

Voters will see that they have secure jobs, wages will start rising, and taxes reducing, their 401K is increasing in value, as is the value of their home, and that is all that it takes to get votes. Trump will be vindicated on the Russia garbage and it will have been shown to all be the result of the dossier Hilary paid Russians to create, and it will be the Democrats who are in deep trouble and not the Republicans. If this plays out that way, Trump will get reelected despite what we all may think of him the person and his tweets. It is the policy, and money in the pockets of voters that matters.